Legal

Protect Your Assets

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Dan Drabek

Whenever I speak somewhere, I preach about the importance of separating your personal assets from your company's assets. The best way to do this is by incorporating your business as a corporation or an LLC.

Incorporating a business creates a fictional legal "person" — the corporation — that you work for as an employee. As long as this fictional legal person remains alive — and it does remain alive even if its founder and owner do not — the corporation's debts are owed by the corporation, not by the person who started the company, not by the people...